Loan officer, bank or mortgage broker: what's the difference?
A plain-English answer for Texas first-time buyers.
By Grant Martin, NMLS 2849522. Updated November 2026.
A bank or other lender makes the loan. A mortgage broker doesn't lend its own money and typically works with several lenders. A loan officer is the licensed person who guides you and can work for either one.
Who does what
- Lender or bank: provides the money for your loan, and you repay that lender or its servicer.
- Mortgage broker: doesn't lend money and typically submits your application to one of several lenders.
- Loan officer: the licensed person who takes your application and guides you. They may work for a lender or a brokerage.
Which is better?
Neither is always better. A bank may suit you if you value an existing relationship or a specific product. A broker can give you access to several lenders from one place. The CFPB points out that a loan officer or broker isn't necessarily providing the lowest-cost loan, so compare written offers either way.
How they get paid
Loan officers and brokers are usually paid a fee or commission, either by you or by the lender. Ask who pays and how much before you commit, then check your Loan Estimate.
How Grant works
Grant Martin is a licensed mortgage loan originator with Swisher Capital, PLLC, an independent mortgage brokerage. Ask him which lenders and options apply to your situation, and feel free to compare his offer with others.
Common follow-up questions
Does a mortgage broker lend the money?
No. A broker doesn't lend money. A lender makes the loan, and a broker typically works with several lenders.
Is a broker cheaper than a bank?
Not automatically. Compare Loan Estimates from each option to see the rate, APR and fees.
Want this applied to your situation?
Grant can walk through your numbers and options with you.
Sources
General information only. Rules, programs and funding can change. All loans are subject to credit approval and underwriting, and not every program is available through every lender.